IT Outsourcing Services: best practices for business growth

All company directors must be clear that, for a business to grow, there must be innovation and bet on new products and new strategies to be able to diversify what is offered to the target audience. In IT Outsourcing services, businesses have found valuable resources that have injected agility and quality into their most urgent projects.

The IT outsourcing services market stood at $556.67 billion dollars in 2020, and it is estimated that by 2025 it will grow to reach $806.63 billion dollars, according to statistics from GrandViewResearch. This evidences the high demand for resources and technological service providers through outsourcing.

Overview of IT outsourcing services

The growth of IT outsourcing services has also been influenced by the lack of software developers and engineers due to high demand. This is confirmed by a McKinsey survey, which indicates that "nine out of ten executives and managers say their organizations already face skills gaps or expect gaps to develop in the next five years".

Faced with this skills gap, some companies have decided to train the workforce they already have, but for other businesses this can be very uphill, both because of the training time and the costs that this generates.

Businesses that cannot assume these conditions find in IT outsourcing services an accessible option for their budgets, since it is a temporary, external and generally remote contracting. Plus, because resources are focused solely on your project, development and time-to-market is much faster.

Best practices of IT outsourcing services

When we talk about IT outsourcing, it is when a company hires a software development service provider to support a certain project or task that is required.

Before hiring an IT outsourcing service provider, make sure that they apply the best practices in your business, such as the ones we will talk about later in this article.

Well-defined project objectives

Define the goals of your project before the technology provider joins the job. This will allow you to justify the reasons why you need IT outsourcing services.

“Once you have decided to turn your project over to an external service provider, define your requirements so that the provider can easily identify them. Being aware of the project requirements, at the beginning, makes the subsequent development process smooth and efficient. Without knowing your objectives, nothing can be achieved through outsourcing ”, they explain in this regard in an article in the IT Outsourcing Review magazine.

Effective communication

Nothing is accomplished in any aspect of life without good communication. In the technology industry, timely and assertive communication is essential for the project to flow without problems or confusion. The IT outsourcing service provider must have clear communication channels with the client, likewise, the client must be available in case the outsourcing team needs something during development. It is best that communication times are also set, so that everyone is clear about the availability of resources.

Compatibility

The IT outsourcing service provider you choose may seem like the best option, but you should also evaluate its compatibility with your company. The vendor's expertise must match your project requirements, follow software development best practices, and have a fast turnaround time.

The work methodology of your company and that of the supplier must coincide, as well as the terms of confidentiality and security that both handle. And, of course, you must agree on the deliverables of the progress of the project.

Don't trust the price

Many times, wanting to save money, companies choose the cheapest IT outsourcing service provider. And here applies what you get what you pay for. Find a technology provider with justifiable prices, that each responsibility and task corresponds to the price you are going to pay. It does not have to be the cheapest or most expensive provider, but the fairest according to the work that will be done.

Check past vendor projects

It is essential that you review the previous projects of the IT outsourcing service provider, so that you verify the quality of the work and the kind of experience they have. If you still want more testing, you can ask the vendor's resources to run a quick simulation of the work they'll do on your project, if you hire them.

What are the modalities of the IT outsourcing service that you can hire?

Dedicated software team

In this case, the technology provider will assemble a team with all the development and design profiles you need to develop your project. It is ideal for medium and long-term projects that require exclusive dedication.

It staff augmentation

It consists of the temporary hiring of developers, who join the in-house team of a company to do a specific task, to provide experience or to fill talent gaps.

With the information in this article, you will be able to take your first steps in the world of IT outsourcing services. Do you need an outsourcing software development team? At Rootstack, we have +10 years supporting global companies in their digital transformation. Contact us!

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